In this photo taken on May 28, 2018, founder and CEO of Savy Electric Vehicles, Chandan Mundhra (R), looks on as engineers attend an E-Vintage Campus Golf Cart at the company's manufacturing facility on the outskirts of Ahmedabad. (Photo: SAM PANTHAKY/AFP via Getty Images)

Gujarat has again emerged as the best performer in developing startup ecosystem for budding entrepreneurs, according to the ranking of states and union territories by India’s  federal department for promotion of industry and internal trade (DPIIT).

Gujarat was categorised as the best performer among all states and one union territory (UT) Delhi, barring north-eastern states and other UTs.

Among all the north-eastern states except Assam and all UTs barring Delhi, Andaman and Nicobar Islands has emerged as the best performer.

A total of 22 states and 3 UTs participated in the exercise.

To establish uniformity and ensure standardisation in the ranking process, states and UTs have been divided into two groups. While UTs except Delhi and all states in North East except Assam are placed in Category ‘Y’, all other states and UT of Delhi are in Category ‘X’.

Releasing the rankings on Friday, Commerce and Industry Minister Piyush Goyal said that it will help in further promoting the startup ecosystem by the Centre, states and UTs.

“I am also very keen that Indian industry, Indian investors, high networth individuals, possibly mutual funds, insurance companies should also very seriously consider participating in this very exciting journey that our Indian startups are going through,” he said.

DPIIT Secretary Guruprasad Mohapatra said that over 36,000 startups are recognised by the department so far.

All the states are taking steps to promote the growth of budding entrepreneurs, he said adding the startup ecosystem in the country has led to creation of over 400,000 jobs.

The rankings are based on the initiatives taken to develop the startup ecosystem for promoting budding entrepreneurs.   For the purposes of ranking, states/UTs are classified into five categories: Best Performers, Top Performers, Leaders, Aspiring Leaders and Emerging Startup Ecosystems.

Top performers are: Karnataka and Kerala; Leaders are: Bihar, Maharashtra, Odisha, Rajasthan, and Chandigarh; Aspiring Leaders: Haryana, Jharkhand, Punjab, Telangana, Uttarakhand and Nagaland; Emerging Startup Ecosystems are: Andhra Pradesh, Assam, Chhattisgarh, Delhi, Himachal Pradesh, Madhya Pradesh, Tamil Nadu, Uttar Pradesh, Mizoram and Sikkim.

The ranking framework 2019, it said, has seven broad reform areas consisting of 30 action points ranging from institutional support, easing compliances, relaxation in public procurement norms, incubation centres, seed funding, venture funding, and awareness and outreach.

Many parameters involved getting feedback from beneficiaries which was gathered through more than 60,000 calls made in 11 different languages to empathetically connect with beneficiaries to ascertain the real situation at the implementation levels.

Gujarat emerged as the best performer in the 2018 edition of the ranking also, followed by  top performers Karnataka, Kerala, Odisha and Rajasthan.